STAND. COM. REP. NO. 300

Honolulu, Hawaii

, 2025

RE: H.B. No. 455

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Economic Development & Technology, to which was referred H.B. No. 455 entitled:

"A BILL FOR AN ACT RELATING TO SMALL BUSINESS LOANS,"

begs leave to report as follows:

The purpose of this measure is to establish the Hawaii Start-Up Business Loan Program to encourage entrepreneurship, economic diversification, and resilience.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaii Food Industry Association; Chamber of Commerce Hawaii; Holomua Collaborative; Mana Up; Hawaiʻi Community Foundation; Title Guaranty Hawaii; HPM Building Supply; aio; Maui Chamber of Commerce; and one individual. Your Committee received comments on this measure from the Department of Budget and Finance; and Tax Foundation of Hawaii.

Your Committee finds that new businesses that have existed for under five years create the most new jobs, on net, in the United States and help foster economic growth. This measure will benefit the local economy and help create new jobs by establishing a Hawaii Start-Up Business Loan Program to encourage entrepreneurship, economic diversification, and resilience.

Your Committee has amended this measure by:

(1) Incorporating the Hawaii Start-Up Business Loan Program into the Department of Business, Economic Development, and Tourism's existing Community-Based Economic Development Program;

(2) Changing the appropriations to unspecified amounts;

(3) Adding an appropriation for an unspecified amount for a business loan officer position;

(4) Changing the effective date to July 1, 3000, to encourage further discussion; and

(5) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider appropriation amounts of:

(1) $500,000 to be deposited into and appropriated out of the Hawaii Start-Up Business Loan Program Special Fund; and

(2) $95,000 to fund one full-time equivalent (1.0 FTE) business loan officer position.

As affirmed by the record of votes of the members of your Committee on Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 455, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 455, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,

____________________________

GREGGOR ILAGAN, Chair